Fort Lauderdale-based Patriot National rejects $475 million takeover bid

Nov. 09--Patriot National, a Fort Lauderdale-based provider of technology and outsourcing services for insurance companies, employers and other clients, said Tuesday it has rejected a $475 million takeover bid from Ebix Inc.

Based in Atlanta, Ebix provides software solutions and outsourcing services to the insurance industry.

According to a statement, a special committee of Patriot's Board of Directors analyzed the offer made by Ebix in August and concluded it's "not the best alternative to maximize value for the company's shareholders."

The offer, disclosed on Aug. 1, followed an unsolicited offer received June 15 in which Ebix proposed acquiring 100 percent of Patriot National's outstanding stock for $9.50 a share.

The statement added, "The Special Committee continues to evaluate other more attractive offers and all opportunities for value creation." However, neither the committee nor the board of directors "has made a decision to enter into any transaction or other opportunity at this time."

Patriot National went public in January 2015, then went on an acquisition spree, acquiring 17 companies during the year. The company reported $210 million in revenue and a net loss of $5.4 million in 2015.

In its statement on Tuesday, the company said it would "provide a more complete update on its strategic value creation initiatives" during its third-quarter earnings call on Monday. Ebix issued no statement about Patriot National's decision. Its third-quarter investor call is scheduled for 11 a.m. Wednesday.

Ebix reported $265 million in revenue and net income of $80 million in 2015, according to its annual report filed with the Securities and Exchange Commission.

Following the announcement, Patriot National's stock price closed up 21 percent, from $5.70 to $6.90, on the New York Stock Exchange on Tuesday. The stock closed at $9.41 on Aug. 1, the day the Ebix offer was disclosed.

Ebix closed Tuesday at $55.95 on the Nasdaq, up .36 percent over Monday's close of $55.75.

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